Measures the percentage of revenue that exceeds the cost of goods sold (COGS).

What it Measures ?

How much money we make after covering product/service costs.

Relevant StakeHolders 

Finance Team, Product Manager

In-depth Use Case / Real-world Example

Gross Profit Margin is calculated by subtracting the cost of goods sold (COGS) from total revenue and dividing by revenue. If a company has ₹500,000 in revenue and ₹300,000 in COGS, the gross profit margin is 40%. A higher gross profit margin means the company retains more revenue to cover its other operating expenses. It is essential for evaluating pricing strategies and cost control.